Picture this: You’ve inherited your grandmother’s cherished family home, or perhaps you’ve built a successful business years before marriage. Now, facing divorce in Nevada, you’re wondering if these precious assets will be divided with your spouse. As experienced divorce attorneys in Las Vegas, we at Kelleher & Kelleher see this concern regularly among our clients.
Did you know that in Nevada, nearly 40% of divorce disputes involve complex questions about separate property? Whether you’re considering divorce or simply planning for the future, knowing how to protect your separate property can save you significant stress and financial loss down the road.
Your separate property rights in Nevada carry significant weight – but only if you can prove and protect them properly. The reality is that many Nevada residents lose their separate property rights simply because they didn’t take the right steps to maintain them during marriage.
At Kelleher & Kelleher, our family law attorneys have helped countless Nevada residents protect their separate property rights during divorce. We’ve seen firsthand how proper planning and documentation can make all the difference in preserving your individual assets.
The Basics of Property Division in Nevada
Let’s cut straight to the chase about how Nevada handles property in divorce. Nevada follows community property laws – and this makes a big difference in how your assets might be divided during divorce.
Here’s what that means for you: In Nevada, the law starts with the assumption that everything you and your spouse acquired during marriage belongs to both of you equally. This isn’t just about the obvious things like your house or cars – it includes retirement accounts, businesses, and even that side-hustle you started last year.
Under Nevada law (NRS 123.130), separate property includes:
- Assets you owned before marriage
- Gifts received during marriage
- Inheritances received during marriage
- Personal injury settlements
Here’s the catch: while separate property can remain yours alone, you must prove two key things:
- The property qualifies as separate property under NRS 123.130
- You never took steps to convert it into community property
Consider this example: Let’s say you inherited $50,000 from a relative during your marriage. If you deposited that money into a joint account with your spouse or used it to purchase property in both names, you might have inadvertently converted—or “transmuted”—your separate property into community property.
Protecting Your Separate Property
Nevada law (NRS 123.150) provides several ways to protect your separate property:
- Keep it completely separate from community assets
- Create a prenuptial agreement
- Record an inventory with the County Recorder (though this method is rarely used)
Most people don’t realize how easily separate property can become community property. Something as simple as adding your spouse’s name to a pre-existing account or using inherited money to buy jointly-owned assets can transform separate property into community property.
The courts take these actions seriously. If you do anything that suggests an intent to share what was once yours alone, the court will likely honor that apparent intent. This aligns with Nevada’s policy of protecting each spouse’s equal, undivided interests in community property.
Retirement Accounts
Your retirement accounts require special handling during divorce. Here’s why: Many people start contributing to retirement accounts before marriage and continue contributing throughout their married life. The law protects those pre-marriage contributions as your separate property, even though later contributions made during marriage are considered community property.
Nevada courts use the “time rule” to divide these accounts fairly. This means we look at the timeline of contributions – any money you put into the account before marriage stays yours, while contributions made during marriage are split equally between both spouses. For example, if you contributed to your 401(k) for three years before getting married, those three years of contributions remain your separate property.
Community Property Also Means Community Debts!
When you’re going through a divorce, debts are just as much a part of the property division process as your assets. Think of debt as “negative property” that must be divided between you and your spouse.
Here’s the key principle: If you took on the debt during your marriage, it belongs to both of you – what we call “community debt.” The law assumes both spouses benefited from whatever was purchased or financed with that debt, so you’ll both share responsibility for paying it back.
But what about debts from before the marriage? Those stay with the person who originally took them on. For instance, if you brought student loans into the marriage, those remain your separate debt after divorce.
Sometimes, the court might assign more debt to the spouse with a higher income – but they’ll balance this by giving that person more assets too. At the end of the day, the goal remains a 50/50 split of your combined assets and debts.
What Happens to Property Outside Nevada?
Do you own property in another state? Maybe a vacation home in California or a rental property in Arizona? Many of our clients at Kelleher & Kelleher ask how Nevada courts handle these out-of-state assets during divorce.
Here’s the good news: If you’re getting divorced in Nevada, our courts can typically handle all your property division matters – regardless of where that property is located. The court has authority over you and your spouse, which means they can direct both of you to take necessary actions with any property, wherever it might be.
A Word of Caution Sometimes, local laws where your property is located might affect how we handle its division. For example, if you own a timeshare in Hawaii, specific state regulations there could influence the property transfer process.
That’s why at Kelleher & Kelleher, we thoroughly research these cross-state legal issues early in your case. Our experienced Las Vegas family law team anticipates and addresses these complexities before they become problems. Call us at (702) 384-7494 to discuss your specific property concerns.
Beyond Bank Accounts: The Complex World of Intangible Assets
At Kelleher & Kelleher, we see it time and again – successful professionals and business owners facing a unique challenge in divorce: How do you divide something you can’t touch or see?
Your high-value divorce might involve assets that don’t sit in a bank account or park in your driveway. We call these “intangible assets,” and they often represent significant value in modern divorces. Examples of intangible assets include things like your company’s brand value – built through years of dedication. Stock options from your tech career. Patents that protect your innovations. Even the value of your professional reputation or celebrity status.
The Art and Science of Valuation These assets need skilled experts to determine their true worth. Much like getting your home appraised, professional valuators analyze market conditions, future earning potential, and industry standards to put a dollar figure on these intangible assets.
Finding Common Ground You and your spouse have options. You can agree on values together, potentially saving time and money. If agreement isn’t possible, our network of trusted experts will provide clear, defensible valuations that stand up in court.
Let our Las Vegas family law team protect the value you’ve built. Call Kelleher & Kelleher at (702) 384-7494 for strategic guidance on your high-value divorce case.